Recently, we have received great concern about the payment flow in FreelanceEngine. How the money goes from employer via admin to freelancer, at which project’s stage and how long it would take for money to be transferred from employer to admin and from admin to freelancer. And in case any issue may arise, how to resolve the money.
So this tutorial is carried out with details in each step to make you all clear about the process.
Flow of payment
Let’s take this case as an example for flow of payment in FreelanceEngine:
- Daisy posts a project looking for a designer for her website. The project would take 7 days and its budget is $1300. Next, John – a design freelancer, bids for Daisy’s project with $1200.
- Daisy accepts John’s bidding and has to send $1200 project payment to admin¹ to start the project.
Meanwhile, Admin needs to enable Escrow system in the back-end (Engine Settings > Escrow > Settings > Using Escrow) so that PayPal Adaptive can receive and hold this project payment.
- After that, Daisy and John enter the workspace, officially marking the start of the project. John begins to work on the project.
- Then comes the day when John completes his design for Daisy’s bakery. He checks the Complete status. Daisy feels happy with the work and also adjusts project status to Complete.
- The admin reviews the project. If everything is ok, admin changes project status as Finish. At this point, PayPal Adaptive will immediately transfer project payment to John².
If admin wishes to manually transfer money to freelancers, turn on Manual Transfer option in the back-end (Engine Settings > Escrow > Settings > Manual Transfer).
¹, ²: Regarding commission fee, there are a few things to note:
- Receiver: Admin will receive the commission per successful project.
- Payer: Admin can decide who will pay in the back-end (Engine Settings > Escrow > Settings > Payer of commission).
- Besides, Admin can set the commission rate as percentage or a specific amount.
If project owner (employer) is the one who pays, then when the bid is accepted, he has to send to admin the project payment PLUS commission fee. On the other hand, if freelancer has to pay, the amount he/she receives equals project’s payment DEDUCT commission fee.
However, things are not perfect sometimes. Dispute may arise during the project, freelancer or employer may quit in the middle of the project. In this situation, admin plays the role of a judge to make the final decision. Based on reasons given by both employer and freelancer, admin will decide whether to make the refund for employer or to send money to the freelancer.
In short, the payment flow in FreelanceEngine is quite clear with relevant steps. Especially, with Escrow system and PayPal Adaptive, workflow and transaction are smoother and more reliable when all involved parties are secure in the knowledge that project’s money is kept safe with this system.